As the region reaches toward economic recovery, major nonprofit organizations are discovering that flat is the new up.

For most, contributions from individual and corporate donors, as well as government allocations, are unchanged over the last year.

“I think it’s going to continue to be a struggle around here, like it is for everyone else,” said Steve Heath, president and chief executive officer of United Way California Capital Region.

As a result, some larger charities, including United Way, plan to trim their budgets for the next fiscal year. Most say they will use attrition, rather than layoffs, if positions need to be cut.

Elsewhere, charitable contributions rose slightly last year, reflecting improvements in the national economy and jobless rate. The Foundation Center’s annual nonprofit fundraising survey in November found that 36 percent of charities reported increased donations in the first nine months of 2010, compared with only 23 percent during the same period the previous year.

The national and regional findings reflect differing rates of economic recovery. The U.S. economy continues to grow modestly and the national unemployment rate has declined further since the survey. It was pegged at 8.8 percent this month, the lowest since March 2009.

California’s jobless rate hovers just over 12 percent, but regional unemployment is higher, at 12.6 percent in February.

Patti Larson of Sacramento’s Nonprofit Resource Center said the region’s basically flat charitable contribution rate is “just a reflection of the economy.” Larson, an information services manager, and her co-workers provide resources and other help for leaders of nonprofit groups in Sacramento and 18 surrounding counties.

United Way plans a conservative budget as its leaders try to estimate future donations and uncertain state funding.

“It’s kind of a mixed bag,” Heath said. “In the private sector — and by that I mean everything but the state of California and the federal government — we’re up 3 percent overall.”

But the nonprofit’s 2010-11 fiscal year ends June 30, so there’s but a few months remaining to boost the year’s results.

“There are still a couple of large campaigns and small ones to run,” Heath said. In one such campaign with the Campbell Soup plant on Franklin Boulevard, he received a check Friday for more than $78,000 for United Way.

Trimming budget, staff

For United Way, the big question mark remains the state. Because the nonprofit receives much of its funding through payroll deductions, it has been hard-hit by the region’s high job losses and state furloughs.

“Our state campaign (for contributions) is down about $350,000 compared with last year’s, although it’s not as bad as it could be,” Heath said. “As far as our prospects for the year ahead, I sure wish I knew.”

For 2011-12, the agency expects to trim its operating budget by about 10 percent and may need to cut two or three of its 28 jobs, he said. Spending on community programs will be about the same as this year, however.

United Way will examine new fundraising strategies, such as grant searches and possibly an endowment program, Heath said.

UCP of Sacramento and Northern California, another major area nonprofit, also has seen mixed results on its charitable contributions. It plans to focus on sustaining programs, rather than expanding, during the next fiscal year.

Individual donations are down about 20 percent from last year, said Doug Bergman, UCP’s president and CEO. Total revenue from government and donations decreased by 9 percent.

However, the charity gained funds from an estate gift, thrift store sales and car donations, said Bergman.

With its 2010-11 budget year ending Sept. 30, the regional UCP expects to increase next year’s budget to make required improvements for the Paratransit busing program. The agency increased its budget by 9 percent this year to add to its fleet of 45 buses, which provides 4,500 miles per day of transportation.

As for funding strategies and other goals, Bergman said UCP will build its base of individual supporters, partner with businesses and provide services such as free e-waste pickup to encourage recycling and reuse.

‘Goodwill Arena’

Bad times have been good to one of the region’s largest nonprofits: Goodwill Industries Sacramento Valley Northern Nevada.

The organization’s annual budget jumped 27 percent over last year to $38 million, said Connie Schulze, director of finance for the regional Goodwill operation.

Although the local Goodwill saw an 11 percent drop in cash donations from 2009, it also had a 12 percent increase in donations of clothing and household goods over 2009, according to Schulze.

More significantly, it saw a surge in sales as tough times and the current fondness for retro styles and frugal shopping increased traffic at the nonprofit’s thrift stores. By drawing mainly on sales profits, rather than contributions, Goodwill added 18 Donation Xpress Centers and one retail store in 2010. This year, it opened three more donation centers and a new outlet.

Goodwill plans to open a retail store in midtown Sacramento during the second quarter, Schulze said. The agency also opened a Job Connection Center for people seeking work, in May in North Sacramento.

Another of the larger Sacramento nonprofits — WEAVE, or Women Escaping A Violent Environment — appears to be passing the economy’s challenge.

“We’re on a July through June budget year, and we’re actually a little ahead of last year,” said Beth Hassett, executive director. “I feel like we’re working hard for every dollar.”

Successful strategies

One key to fundraising has been targeting specific corporations, such as Mary Kay cosmetics, which recently paid for a youth-oriented nature center at WEAVE’s shelter for women and children.

Other effective fundraising strategies have been online giving and staying attuned to the community, Hassett said.

“We have to really listen to what the community wants to support,” she said. “More people are giving more to the particular campaign rather than just the overall cause.”

Sister Libby Fernandez, executive director of Sacramento’s Loaves & Fishes, prefers the miracle strategy. She said it is a miracle that the many $1 donations add up to feed 650 hungry and homeless guests each day.

“Through these economically challenging times, Loaves & fishes has been able to maintain a steady stream of donations, both in-kind and financial,” Sister Libby stated in an e-mail. “We believe in the Bank of Faith!”

Loaves & Fishes, which receives no government funding, served its six-millionth meal in mid-March.